Treasure Chest: Switch Telstra For NAB

This story features TELSTRA GROUP LIMITED, and other companies. For more info SHARE ANALYSIS: TLS

By Rudi Filapek-Vandyck

What?

Stockbroker DJ Carmichael recently advised its clientele to switch out of Telstra ((TLS)) and into National Australia Bank ((NAB)).

Why?

Defensive stocks such as Telstra have significantly outperformed cyclical, growth oriented stocks, including the banks. DJ Carmichael now believes the dividend yield advantage Telstra had over bank stocks in Australia has effectively diminished, and those banking stocks are arguably offering more upside in capital appreciation terms if and when investor confidence returns.

In other words: investors don't really lose anything, in yield terms, by making the switch, but they are gaining more leverage to any sustainable rallies.

Technical limitations

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